Property Coverage

Business property insurance covers your physical assets from unexpected losses like fire, theft and wind.  Business property coverage can include: buildings, your business personal property and equipment within those buildings, exterior fixtures, inventory and the loss of income if you can’t operate your business due to a claim.

FAQs

What does business property insurance cover?

Collision is a type of auto insurance coverage that helps pay to repair or replace your car if it’s damaged in an accident. This type of coverage helps protect you financially from the expense of vehicle damage as the result of a covered accident. Whether it’s a fender bender, side swiping a guardrail or backing into a tree, collision coverage will help you get back on the road.  

What does business property insurance cover?

Your business property isn’t just monetarily valuable, it is essential for keeping your business operational.  Business property coverage protects your valuable physical assets from unexpected loss and can help you recover more quickly after a loss.  This coverage can help cover the cost to repair or replace damaged, destroyed or lost property such as:

  • Building
  • Tools & equipment
  • Tenants improvements & betterments
  • Inventory & supplies
  • Furniture
  • Computers, printers
  • Outdoor property like fencing, signage and trees
  • Other business personal property

Business property coverage protects against a variety of losses.  Some common covered causes of loss include: fire, windstorm, hail, theft, vandalism, explosion and even building collapse due to the weight of snow.

Business income is included on most property policies and covers a company’s loss of income due a temporary suspension of normal operations as a result of damage to physical property.  If the damage is severe, it will likely take time for the business to resume normal operations.  While the business is being restored, called the waiting period, revenue can decline significantly or cease altogether.

Example: A fire breaks out at your clothing store and causes damage to the building and your inventory.  While the building is being repaired you are not able to operate your business and you estimate it will take several months to recoup your lost inventory.  Business income coverage can help you cover mortgage and rent payments, employee payroll and loss of profit during the restoration period.

Other coverages

There are additional coverages available by endorsement or enhancement on business property policies.  Your insurance agent can help you identify the coverages that are important to your business operations to tailor your coverage to meet your needs.  Below are a few examples of common additional coverages available for business property policies:

  • Accounts receivable
  • Valuable papers & records
  • Sewer drain and backup
  • Building ordinance or law

Actual cash value vs replacement cost

Business property is usually valued on either an actual cash value (ACV) or a replacement cost (RC) basis.

  • Actual cash value is the replacement value less depreciation
  • Replacement cost is the replacement value with like kind or quality

Coinsurance

Many insurance carriers require that a certain percentage of the building value be insured to receive full claims coverage. This is called coinsurance. Coinsurance is intended to discourage the undervaluing of business property. It is important to select coverage that is adequate to cover the true value of your business property. If your insurance limits aren’t enough to cover a claim, your business may be required to pay for the loss.

Example: You policy includes an 80% coinsurance clause. You insure your building for $500,000, which is only 50% of the actual value of the property. You suffer a covered loss of $400,000. Even though this is less than the insured amount of $500,000, the insurance company will only pay for 50% of the loss, or $200,000.

Inflation guard

Many business property policies include an inflation guard, represented as a percentage on your building, business personal property or inventory.  An inflation guard is intended to help the value of your business assets keep pace with rising construction and replacement costs. 

Example: Your building is insured for $500,000 and includes a 6% inflation guard.  At your next policy renewal, your building value will be increased by 6% for a total value of $530,000. 

What doesn’t business property insurance cover?

Insurance coverage is not intended to cover every type of loss and business property coverage is no exception.   For example, business property policies tend to exclude damage to property caused by natural disasters like earthquakes, floods, tornadoes and hurricanes.  Coverage for these types of losses may be available as an enhancement to an existing property policy or as a standalone policy.  Business property also does typically cover damaged resulting from short circuits and power surges as these types of losses would be covered by an equipment breakdown policy. Other common exclusions include:

  • Employee theft as this would be covered by crime insurance
  • Goods in transit would be covered by an equipment or installation floater policy
  • Customer’s property can be covered by adding care, custody & control coverage general liability insurance
  • Normal wear & tear is excluded from most insurance coverages

Who needs business property insurance?

Business both large and small can benefit greatly from investing in business property coverage.  If any of the below applies to your business, it makes sense to consider purchasing coverage.

  • Owns a building, store, office, warehouse
  • Has essential business documents (like account records)
  • Rents a building, store, office, warehouse
  • Owns or rents equipment and tools
  • Has outdoor property (like fencing or signs)
  • Owns or rents business personal property (like computers or furniture)
  • Has products or inventory

Business property insurance may also be required by a landlord (if you rent your space) or by a lender.  Although landlords typically carry insurance coverage on their building, your lease may require you to insure the building you rent.  It is also important to note that landlords do not usually take responsibility for insuring business property or tenant improvements and betterments in the rented space.  Make sure you read and understand the requirements of your lease as they usually outline who is responsible for insuring what.

Does my homeowner’s policy cover my business personal property?

A standard homeowner’s policy may offer some overage for your business personal property but it is often not sufficient or it may offer no coverage at all. If you have a home-based business, you’ll want to review your homeowner’s policy with your agent to determine if you need a business property policy to adequately protect your assets. 

What does business property coverage cost?

A variety of factors are used to calculate the premium for business property coverage.  The biggest factor is the value of your business assets.  It is a good idea to keep an inventory of all physical assets located at your property to help determine an accurate value and in the event of a claim. Other factors include: location, construction of the building you own or rent, the occupancy of the building and risk management features (like security systems and fire sprinklers.)  For example, an all brick building located less than a mile from the fire station that has a central station burglar alarm is going to be less expensive to insure than a frame building located 5 miles from the fire station that has no burglar alarm.  Likewise, occupancies like an auto repair shop tend to have higher property premiums than office space occupancies. 

What our clients are saying:

NEWS  |  November 8, 2011
Kelley Cox

GLENWOOD SPRINGS, Colorado – When investor and businessman Harry Logan founded Glenwood Insurance Agency in 1911, he probably wasn’t thinking about the company’s longevity. He sold it eight years later.

But from 1919 to the present, the company has passed through two Glenwood Springs families, and is still owned today by a partnership of families.

Now, 100 years after Logan opened the doors, the Glenwood Insurance Agency is celebrating a century in business.

“I’m proud to carry on the tradition,” said Scott Bolitho, a co-owner and third generation executive in the company. “My grandfather did business with a handshake. That personal touch has carried through to the present.

“We like to do business by establishing a relationship with people. You know in insurance, there’s nothing tangible you’re selling. Everything is built on trust and relationships,” Bolitho said.

“A lot of things have changed over the years, most notably the technology and the regulations on the industry,” said Asa Jones, another co-owner who took over from his brother Pete.

“The foundation for our success has always been our relationships with our customers. One of the benefits of living in and doing business in a town like Glenwood Springs is that we get to know and help so many great families,” Jones said.

“Through good years and bad, our priority has been to treat our customers and our employees like family,” said Nettie Avery, who, along with her husband Bryan, bought a share of the company in 1999.

“That’s one of the reasons we’ve weathered the storms. We’ve helped our customers through the difficult times by proactively meeting with them to find ways to cut their costs without sacrificing their coverage,” Avery said. “When our customers succeed, we succeed.”

Harry Logan was in the insurance and lending businesses when he launched Glenwood Insurance Agency in 1911. The town was just 26 years old, and didn’t stretch any farther south than 13th Street.

In 1919, Logan sold the business to Carleton Hubbard Sr., who ran it until the 1960s, said his son, Carleton Hubbard Jr. of Glenwood Springs, who also worked in the business in his younger years.

The senior Hubbard, who had spent the previous 10 years as county clerk and deputy county clerk, had purchased the Garfield County Abstract Co. a year earlier, and he was very busy running the two businesses.

Needing help, he hired Ada Hutchings, a former Strawberry Queen. Proximity paid off, and the two were married in 1928. They ran the two companies from an office in the Hotel Glenwood, a four-story wooden structure at the northeast corner of Eighth and Grand.

In 1944, they moved the office across the street into the brick First National Bank Building. The following year, the Hotel Glenwood burned to the ground.

In the 1960s, the Hubbards bought the abstract companies that were serving Eagle and Pitkin counties, just at the time when Vail and Snowmass Village were beginning to be developed. The title business was far more demanding than the insurance business, so the Hubbard family sold the 50-year-old insurance agency to Walter Thrall.

“My dad would feel very proud,” Hubbard said of the business continuing for another 50 years, “and it wouldn’t surprise him that it is still doing well. It was a nice little agency when he sold it. They [represented] good companies.”

In the same downtown block, Pat Bell owned a competing insurance agency in the Dever Building, on the northwest corner of Eighth and Grand.

“I remember going to my grandfather’s office on Saturday mornings with my brother to play with the rotary phones. We really grew up with the business,” said Scott Bolitho, son of Jere Bell (Pat Bell’s daughter) and her husband, Bill Bolitho.
In 1977, Pete Jones and Bill Bolitho bought the Glenwood Insurance Agency from Thrall and his partner, Ralph Sample. They merged the company with Bell’s agency, forming a company that was, for a few years, called the Glen Bell Agency.
A few years later, they also acquired the First Agency from Randy Wilson and Bob Howsam. In 1982, Pete’s brother Asa Jones came in as a partner. In 1983, they partners changed the name back to Glenwood Insurance Agency.

Today, Glenwood Insurance is owned by Scott Bolitho, Asa Jones, Bryan and Nettie Avery, along with investors Dennis Lawrence of Wyoming and Sarah Fleming of Grand Junction. Ian Exelbert, who previously served as market president for U.S Bank and controller for WestStar Bank in Glenwood Springs, joined the agency in September as an owner and chief operating officer.

Scott Bolitho also noted that Todd Thulson was a partner and key player in the agency from 1999 until his retirement in 2008.

Bolitho said as a kid, he never imagined following his father and grandfather into the insurance business.
“The last thing I was going to do was move back to Glenwood Springs. I wanted to work in sports marketing,” he said.
But he earned a college degree in insurance and finance, and spent seven years in Denver working for Travelers Insurance, one of the lines Glenwood Insurance has carried for decades. And then, just like his parents, he moved his young family back to Glenwood Springs and went into the business.

Now his son Ryan, 26, works there too.

“It was the same thing as me,” Scott Bolitho said. “He used to say to me, ‘Dad, how can you work in an office?’ And here he is.”

The insurance industry calls this multi-generational pattern “perpetuation.”

It results in stability and dependability that keeps customers and employees on board for years. Many of the agency’s customers are the second, third and, in some cases, fourth generations doing business with Glenwood Insurance, and some employees have been with the company for 20 to 30 years.

For Exelbert, it’s like stepping into a deep tradition.

“This is a great opportunity to carry on the legacy of a Glenwood Springs business that has stood the test of time, and proven its commitment to customers and employees again and again,” he said.

– Publicist Mandy Gauldin contributed to this report.